US embassy cable - 04TAIPEI3141

C O N F I D E N T I A L TAIPEI 003141 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 10/07/2014 
TAGS: PGOV, PREL, TW 
SUBJECT: LY PRESIDENT WANG ON SPECIAL BUDGET 
 
 
Classified By: AIT Deputy Director David Keegan, Reasons: 1.4 (B/D) 
 
1. (C) At a October 6 meeting at his reception house, 
Legislative Yuan (LY) President Wang Jin-pyng told AIT that, 
with the LY expected to recess in November in order to 
release its members for the December 11 election campaign, 
there is not enough time to debate the Chen administration's 
proposed budget to purchase advance defense systems. 
 
2. (C) Moreover, Wang pointed out that the cost needs to be 
reduced.  He said that National Defense Minister Lee Jye had 
updated him October 5 on the progress of the negotiations 
between the Taiwan Ministry of National Defense (MND) and 
U.S. Department of Defense.  Wang said that he has told Lee 
that the MND should hold further negotiations on the price 
before the LY reviews the budget to authorize the purchase. 
Wang intends also to discuss the issue further with PFP 
Legislator Lin Yu-fang, DPP Legislator Lee Wen-chung, and the 
MND's Vice Admiral Lei Kuang-shuh, all of whom accompanied 
Wang to the U.S. in June 2004. 
 
3. (C) Wang emphasized that the position of the KMT has not 
changed since his previous conversation with AIT in July 
2004.  The KMT will support the Special Budget but will 
continue to seek political advantage by fighting over the 
price and details.  When AIT suggested that the LY consider 
taking a "two step" approach by approving the proposal first 
then allocating funds at a later time, Wang replied that the 
LY needs to allocate funds at the same time that it approves 
the package. 
 
4. (C) Comment: Wang's comments to AIT and his recent public 
statements indicate in fairly clear terms a decision by the 
KMT to postpone consideration of the budget until after the 
December 11 election.  Pan-Blue officials have assured AIT 
that the LY will take positive action on the bill during the 
lame duck session that is expected to run though mid-January. 
 However, MND officials fear that post-election confusion 
within the Pan-Blue camp may force the budget into the first 
session of the next LY which begins in February.  Septel will 
report on Wang's assessment of the current political climate. 
 End Comment. 
PAAL